divorce
 






 

Question by  Wendy47 (140)

Who is responsible for 401-k loans during a divorce?

My husband and I took out a 401-k loan, who should have to pay it.

 
+7

Answer by  LadyLawyer (325)

It is a joint debt that the court will divide. Theoretically, all joint debts and assets should be divided on a 50-50 basis. Whoever pays for the loan during the pendency of the divorce should get credit. Please note that this needs to be in court papers.

 
+5

Answer by  tamarawilhite (17883)

A 401-K loan is typically owed by the individual who owns the 401-K. However, in community property states, all debt accumulated in the marriage is legally owed by both partners.

 
+5

Answer by  maber (1427)

Since you both took out the loan, you will each have to pay half of the balance of the loan.

 
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